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Advanced-Ad-5693 t1_iy15x0u wrote

Reply to comment by Diamond_HandedAntics in Entrenched food inflation for years to come. by Doyoufeelme101

Fuel has a very limited effect on retail food pricing. $1500 in increased fuel costs is nothing when the trailer is pulling 40,000# of chicken. Versus avian flu tripling the price. Fertilizer cost is fuck all for a farmer compared to drought. Like I said, OP has the right idea but the wrong driving causes. Since this is a finance forum it's important to be able to delineate.

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Diamond_HandedAntics t1_iy1ydeo wrote

Well there is the flaw in your thinking, 40k lbs of chicken on a “trailer” is wholesale not retail. Before that the live chickens had to be moved. After that it is moved in bulk to be packed, then it’s moved to distribution centers then on to retail or food service. So fuel has a huge impact on food price and everything because nothing is just moved once straight to retail. Like I said your points are valid and his are to. I could go on about the other reasons as well but you trying to make your reasoning better than his for coming to the same conclusion is just arguing for the sake of arguing. Try to expand your knowledge instead of trying to be knowledgeable.

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Advanced-Ad-5693 t1_iy1yp6n wrote

Lol. It's not a huge impact even if it's repetitive. That's the part you don't seem to grasp. Fuel might add 10% at the retail level if the cost of fuel DOUBLES. Avian flu TRIPLED the retail cost. You can't tell the difference between 10% and 300%. One of us for sure.

I do this for a living, I give projections to the largest public and private restaurant groups in the US. And I have yet to miss. I predicted the massive impact in food cost and sustained supply chain woes I May 2020 and spent a year getting laughed out of the office before everyone started asking me to tell them what was going to happen next.

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